1991.05.01
CUSTOMS GENERAL ADMINISTRATION
CUSTOMS REGULATIONS OF THE PEOPLE'S REPUBLIC OF CHINA ON CUSTOMS PRICE
EVALUATION OF IMPORT GOODS
(Promulgated by Decree No. 19 of the Customs General Administration on
April 26, 1991)
Article 1 With a view to guaranteeing the implementation of the State
policies concerning Customs duties and the State financial revenue,
safeguarding the legitimate rights and interests of legal business
operations and preventing evasion of Customs duties by way of declaring
lower or false deceptive prices and in accordance with the Article 10 of
"The Regulations of the People's Republic of China on Import and Export
Customs Duties", these regulations hereof are formulated.
Article 2 The Customs evaluate the prices of import goods for levying
Customs duties in the following cases:
(1) The declared prices are obviously lower than the prices of the same
or similar goods imported by other units for large quantities of
transactions and no legal documents or proper reasons are provided for
such declared prices;
(2) The declared prices which the Customs have come to know to be
obviously lower than the normal prices of the same or similar goods at
the international market and no legal documents or proper reasons are
provided for such declared prices;
(3) The Customs have sufficient evidence on hand to prove that the
seller and buyer have special economic connections; and
(4) Other special circumstance of transactions which the Customs deems
it necessary to evaluate the prices.
Article 3 With reference to the following prices, the Customs evaluate
the prices of import goods:
(1) The settlement prices of the goods at the market of the exporter
country;
(2) The settlement prices of the same or similar goods at the market of
the exporter country;
(3) The settlement prices of the same or similar goods at the
international market;
(4) The prices obtained by deducting rational amount of taxes, fees and
profits from the wholesale price of the import goods in question at the
home market; and
(5) Other price evaluation methods the customs deem as rational.
The above-mentioned five methods for price evaluation are to be employed
in the preference order as listed above, that is, when it is impossible
to use the first method, the second method will be used.
Article 4 The Customs price evaluations are applicable to the goods in
question as recognized by the Customs on the day of declaration for the
import of the goods.
If the goods arrive in installments, the prices of the batches following
the first are evaluated as the evaluated price of the first batch on the
day of declaration of import.
Article 5 The consignees of import goods and their agents shall declare
the real prices of import goods to the Customs and furnish the legal and
genuine documents on the settlement price to the Customs in accordance
with "Customs Law of the People's Republic of China" and "Regulations of
the People's Republic of China on Import and Export Customs Duties".
Article 6 If the Customs find, within three years, the evidence of
deception for evading Customs duties by way of declaring false lower
prices than the market settlement prices of the import goods, the case
will be dealt with in accordance with the relevant regulations in
"Customs Law of the People's Republic of China".
If the litigant who confesses on his or her own initiative to have
declared false lower prices than the settlement prices of import goods
and have deceived the Customs after the Customs have levied the duties,
he or she will be handled leniently in accordance with the seriousness
of the matter.
Article 7 The Customs will, after investigation, award the units or
persons who expose someone's tax evasions through declaring false lower
prices or deception in accordance with relevant regulations and keep the
informer's identity secret.
Article 8 The right to interpret these regulations hereof resides with
the Customs General Administration of the People's Republic of China.
Article 9 These Regulations hereof will go into effect as of May 1,
1991.